Despite high prices and interest rates, 63% of Gen Z and millennials say they’re still interested and eager to become homeowners.
Gen Z, who is a bit more eager at 65%, has fears of affording upfront costs (40%) and property taxes (48%), according to a consumer survey from RE/MAX. While millennials, who are a little less eager at 61%, are worried about qualifying for a mortgage because of credit, debt, and income challengers (42%), and maintenance and upkeep costs when owning a home (54%).
"Homeownership is still an important milestone, and our survey shows that Gen Z and millennials are ready to achieve it," says Amy Lessinger, president of RE/MAX. "While current market conditions have impacted timelines, this next generation of home buyers is resolute in their desire to achieve homeownership.”
Because both groups view homeownership as an important life milestone, 66% say their top reason is to provide a stable place for their family to live. Other reasons include having a place to call their own (59%) and an opportunity to have an appreciating asset (44%).
Factors considered most important to both Gen Z and millennials are price (59%), location (54%), size (34%), neighborhood safety (33%), and mortgage rates (24%).
Although willing to compromise on these important factors (56%), one-third of Gen Z and millennials say energy efficient features are the most important to have in a home. Trumping technology-enabled features (27%) and outdoor or recreational amenities (25%).
Between the two generations, millennials are more confident in their financial readiness. Fifty-seven percent are confident in their readiness compared to 47% of Gen Z. Additionally, 42% of millennials have started saving for a down payment compared to 35% of Gen Z.
More than half (56%) of respondents feel confident in their understanding of key financial terms related to homeownership and report strong familiarity with the mortgage process.
More Gen Z respondents (42.8%) plan to use their savings to cover financing than millennials who plan to use a mortgage (41.7%). Only 10% of both groups plan to have assistance from their families.
To learn more about the home buying process, 63% plan to use or consider using a real estate agent or mortgage lender while 95% say they are somewhat or very likely to work with an agent to buy or sell a home.
Gen Z and millennials note online resources (55.4%), family and friends (44%), and home buyer education courses (27%) as other ways they plan to learn about home buying.
